Office

Rising Costs Create a Challenge for Inland Empire Office Landlords

by Jeff Shaw February 13, 2023

— By Kyle Yocum, first vice president, and Phillip Woodford, senior vice president, CBRE — The Inland Empire office market is experiencing a rise in cost, much like all sectors and markets throughout the U.S. As tenant improvement costs continue to increase, it’s becoming more and more challenging to find win-win situations with landlords and tenants. Landlords are having to increase their TI allocations, while tenants are having to show more flexibility as it relates to working with existing space. That, or they must cover a portion of the TI costs themselves or commit to longer-term leases to help the deal pencil for the landlord. Due to TI costs, both parties need to meet halfway and make concessions. I think one of the reasons our market has done well is that we are a smaller market. Most parties involved seem to understand the give and take needed to make deals pencil for both sides. Concessions are entirely contingent on TI costs, with landlords offering significant amounts of free rent and slight discounts on the rental rate if the TI costs are low. If a tenant is seeking major changes to the space, landlords are staying close to or at their …

February 13, 2023

Illinois Leasing Activity Midwest Office

Network Services Co. Signs 40,000 SF Office Lease at Schaumburg Towers in Suburban Chicago

by Kristin Harlow February 10, 2023

SCHAUMBURG, ILL. — Distribution company Network Services Co. has signed a 40,000-square-foot office lease at Schaumburg Towers in the Chicago suburb of Schaumburg. The two-building, 882,000-square-foot office property is now 78 percent leased. Since 2017, American Landmark Properties has invested more than $20 million to renovate the asset. Steve Kling and David Florent of Colliers represented the landlord in the lease. James Otto and Hank Cox of CBRE represented the tenant.

February 10, 2023

Acquisitions Colorado Healthcare Net Lease Office Western

Marcus & Millichap Brokers Sale of 24,806 SF Medical Office Building in Colorado Springs

by Amy Works February 10, 2023

COLORADO SPRINGS, COLO. — Marcus & Millichap has arranged the sale of a medical office building located at 2960 N. Circle Drive in Colorado Springs. A local limited liability company sold the property to local investor for $4.2 million. Colorado Springs Family Practice occupies the 24,806-square-foot building, which was built in 2003 on two acres. Spencer Mason, Brandon Kramer and Erik Enstad of Marcus & Millichap’s Denver office represented the seller in the deal.

February 10, 2023

Leasing Activity New York Northeast Office

Kyndryl Inc. Signs 26,212 SF Office Lease in Rye Brook, New York

by Taylor Williams February 10, 2023

RYE BROOK, N.Y. — Kyndryl Inc., a provider of IT infrastructure services, has signed a five-year, 26,212-square-foot office lease at 2 International Drive in Rye Brook, located north of Manhattan in Westchester County. The tenant, which was formerly part of IBM, has moved in to its space on the second floor. Patrick Murphy, Winston Schromm and Kevin McCarthy of Cushman & Wakefield represented Kyndryl Inc. in the lease negotiations. Peter Duncan and Dana Pike internally represented the landlord, George Comfort & Sons.

February 10, 2023

Development Florida Leasing Activity Mixed-Use Office Southeast

Terra, Blanca Begin Leasing Offices at Mixed-Use Development in Miami’s Bay Harbor Islands District

by John Nelson February 9, 2023

MIAMI — Locally based developer Terra and brokerage firm Blanca Commercial Real Estate have launched leasing at The Offices at THE WELL, the office component of THE WELL Bay Harbor Islands mixed-use project located at 1177 Kane Concourse in Miami. Tere Blanca, Danet Linares, Christina Jolley and Nicole Kaiser of Blanca Commercial Real Estate have begun leasing the building’s 98,420 square feet of office space, which is spread across four floors. In addition to offices, THE WELL Bay Harbor Islands will also feature 54 luxury residences and 11,000 square feet of wellness space operated by New York-based THE WELL that includes a fitness center, concierge services, indoor and outdoor classes and onsite sessions with a health coach. Other amenities include a 6,500-square-foot food-and-beverage outlet, elevated plaza, rooftop and a parking garage. Terra plans to break ground on the mixed-use development in the first quarter with completion anticipated for late 2024. The design team includes architect Arquitectonica and interior designer Meyer Davis.

February 9, 2023

Acquisitions New Jersey Northeast Office Retail

Gebroe-Hammer Arranges Sale of 45,000 SF Office, Retail Building in Elizabeth, New Jersey

by Taylor Williams February 9, 2023

ELIZABETH, N.J. — Locally based brokerage firm Gebroe-Hammer Associates has arranged the sale of a 45,000-square-foot office and retail building in the Northern New Jersey community of Elizabeth. The six-story building at 1139 E. Jersey St. was originally constructed in the 1920s as an apartment complex. Today, the building houses 84 micro offices and retail space that is leased to five tenants. Stephen Tragash of Gebroe-Hammer represented the seller, Edron Realty, in the transaction and procured an undisclosed private investor as the buyer.

February 9, 2023

Leasing Activity New York Northeast Office

Polsinelli PC Signs 13,129 SF Office Lease Expansion at 600 Third Avenue in Manhattan

by Taylor Williams February 9, 2023

NEW YORK CITY — Law firm Polsinelli PC has signed a 13,129-square-foot office lease expansion at 600 Third Avenue, a 575,254-square-foot building in Manhattan. The tenant, which also extended its lease by 10 years to run through 2036, now occupies 52,516 square feet across the entire 33rd, 40th, 41st and 42nd floors. David Berkey internally represented the landlord, L&L Holding Co., in the lease negotiations. Kevin McLennan, Ian Murphy and Silvio Petriello of CBRE represented Polsinelli PC.

February 9, 2023

Market Reports Michigan Midwest Midwest Market Reports Office

Is the Motor City Office Market Idling or Roaring?

by Kristin Harlow February 9, 2023

By Andy Gutman, Farbman Group It’s no secret that the last few years have been a turbulent time for the office market nationally. While Detroit has fared somewhat better than some other cities across the Midwest, the same pandemic (and now post-pandemic) pressures have led to a higher-than-usual degree of uncertainty and volatility. Here in the early part of 2023, it’s a good time to take a step back and look at how the Detroit office landscape is changing, how it’s not changing and what might be in store throughout the rest of the year — and beyond. This is a unique time because there’s still a tremendous amount of uncertainty to factor into the commercial real estate market in general, and into office specifically. There are a lot of brands and businesses who either have not made up their mind about their office structure and needs going forward, or are still in an experimental post-pandemic period where they are trying to figure out the balance that works for them in terms of remote or hybrid work options and brick-and-mortar configurations. Until more of that uncertainty is resolved, a clear picture of the medium- and long-term prospects for the office …

February 9, 2023

Development Office Texas

Stonelake Capital to Develop 180,000 SF Office Building in Uptown Dallas

by Taylor Williams February 8, 2023

DALLAS — Stonelake Capital Partners, a private equity firm with offices in Texas and Atlanta, will develop 2626 McKinney, a 180,000-square-foot office building in Uptown Dallas. The site is adjacent to a Whole Foods Market. The building will rise 17 stories and will offer amenities such as a lounge with a coffee and cocktail bar, communal kitchen, conference center, fitness center and a landscaped terrace. Cushman & Wakefield is marketing the development for lease. Completion is slated for summer 2025.

February 8, 2023

Leasing Activity New York Northeast Office

JLL Negotiates 45,000 SF Office Lease in The Bronx

by Taylor Williams February 8, 2023

NEW YORK CITY — JLL has negotiated a 45,000-square-foot, 20-year office lease at 2100 Bartow Ave. in The Bronx. The 180,000-square-foot building was constructed in 1988. Al Gutierrez and Ian Ceppos of JLL represented the landlord, Prestige Properties, in the lease negotiations. Mark Boisi and Stephen Bellwood of Cushman & Wakefield, along with Neil Lipinski of Lipinski Real Estate represented the tenant, United Federation of Teachers. The tenant plans to take occupancy of its new space this fall.

February 8, 2023

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